Circular Economy Business Models: A Systemic Approach to Balancing the Pillars of Sustainability

Abstract

To achieve sustainability objectives, the three subsystems of the environmen- tal, social, and economic pillars must attain equifinality. However, in numer- ous instances, these subsystems fail to strike a balance, resulting in failure to realise sustainable outcomes. Therefore, transitioning to a circular economy through the adoption of appropriate business models could be a valuable approach for achieving equifinality and balancing the three pillars of sus- tainability. In the present study, three graphical conceptual images were produced. This study demonstrates the potential benefits of integrating sus- tainability principles into circular business practices. The graphical images presented in this chapter serve to visualise these connections and highlight the importance of considering sustainability in economic decision-making. The models demonstrate how businesses can contribute to social welfare by integrating sustainability and circular economic principles into economic decision-making. This research sheds light on the potential of circular and sustainable business practices to create value at both the micro and macro levels of the economy, offering a compelling case for the integration of sus- tainability into business models. This conceptual chapter explores the links between Sustainability and Circular Economy Business Models (CEBMs) through a series of theoretical and graphical presentations. This is one of the first attempts to develop a graphical analysis illustrating the connections within the concept of the circular economy. This endeavour aimed to create a conceptual framework without the need for empirical testing.